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In 2023, retail sales online reached $6.3 trillion, and it's projected to surpass eight trillion by 2026. The shift of buying goods and services into the digital sphere is increasingly evident, intensifying competition in this space.

Retailers are now inventing new approaches, leveraging VR, AR, and other technologies for marketing purposes. They're also adapting existing tools (SEO, Push notifications, SMS, etc.) to maintain visibility to customers. Thus, as e-commerce expands, so does internet marketing, encompassing various channels and promotional strategies.

In the article, we'll delve into what e-commerce marketing entails, the tools it employs, and successful promotional strategies.

## What is E-commerce Marketing

Firstly, let's clarify what electronic commerce involves.

[**E-commerce**](https://altcraft.com/glossary/e-commerce-types-examples), or electronic commerce, refers to conducting business through online channels, which serve as the primary means of customer attraction and communication. It typically involves the online sale of goods and services.

The e-commerce market grows annually, largely supported by promotional channels. Digital marketing has long been a vital component of e-commerce. It's challenging to imagine an online store without email campaigns, advertisements, and other means that enhance product visibility.

E-commerce marketing encompasses digital methods and practices used to promote a business's goods and services online, aiming to boost sales. For e-commerce, marketers enhance brand recognition and highlight specific products to capture user attention. The tools of digital marketing vary based on the goals and objectives of the online business.

## E-commerce marketing tools

Internet marketing technologies evolve rapidly, but some core tools remain constant.

### Website and SEO

To establish an online presence, an e-commerce platform is essential – a software enabling the creation of an online store and the execution of transactions (payment, order processing). A user-friendly and properly functioning website or [**landing page**](https://altcraft.com/glossary/what-are-landing-pages-and-why-they-matter) is the foundation of e-commerce.

However, to gain visibility for your business, promoting the website is crucial. One effective method is SEO optimization. It's a technique that elevates your website's ranking in search engine results through keywords, page speed enhancements, and various strategies.

<Img
img="/uploads/seo_optimization_for_brand_promotion_75c86030ed.png"
alt="SEO optimization for brand promotion"
src="SEO optimization is a good method of brand promotion"
/>

### Advertising

Digital marketing in the online world encompasses various types of advertising chosen by businesses based on their objectives.

**1. Contextual**

Advertisements appear in search engine results based on user queries and include specific keywords.

<Img
img="/uploads/contextual_ads_in_google_f8aa934a4a.png"
alt="Contextual ads in Google"
src="Contextual ads within Google showing pictures marked as “product” with a link to a page of the online store"
/>

**2. Targeted**

Advertising messages are tailored to a specific audience (usually on social media) sharing certain characteristics. Unlike contextual advertising, targeting doesn't precisely know if a user needs the product or service, but it “guesses” their preferences and presents the relevant offer. Retargeting is a distinct form of targeted advertising, where users are shown products they previously viewed.

<Img
img="/uploads/targeted_advertising_from_360learning_afe48c1b08.png"
alt="Targeted advertising from 360Learning"
src="Example of targeted advertising from 360Learning"
/>

**3. Banner**

These are pop-up or static banners on websites.

<Img
img="/uploads/banner_advertising_c57e2eb84e.png"
alt="Banner advertising"
src="Example of banner advertising"
/>

**4. Native**

Embedded advertising within content that resembles recommendations and seamlessly fits into the material's context.

**5. Video advertising**

Clips shown before, during, or after main videos (trailers, informative content, etc.).

<Img
img="/uploads/video_ads_from_uber_21df244377.png"
alt="Video ads from Uber"
src="Example of video ads from Uber"
/>

### SMM

It's hard to imagine digital marketing without the support of social media, which sometimes become independent platforms for e-commerce. Companies use their social media pages to showcase products, create posts about their services, and engage with followers.

Social media platforms even offer their own sales tools, such as product cards on VK, for instance.

<Img
img="/uploads/smm_promotion_from_essie_4a41bf0f29.png"
alt="SMM promotion"
src="SMM promotion from Essie"
/>

### Email newsletter

The email marketing channel remains relevant and continues to be a crucial tool for internet marketing strategies. Emails are used to inform customers about new arrivals, promotions, order confirmations, payments, and delivery updates. In some cases, they also remind 'forgetful' customers [**who left items in their carts**](https://altcraft.com/blog/how-to-reduce-cart-abandonment-rate) but did not complete the purchase. Email remains a familiar and preferred means of communication with brands for many.

<Img
img="/uploads/newsletter_with_personalized_product_selections_10e6b3693b.png"
alt="Email newsletter with personalized product selections"
src="Email newsletter with personalized product selections from Sephora"
/>

### Push notifications
Internet marketing and e-commerce have long embraced [**push notifications**](https://altcraft.com/blog/mobile-marketing-101-push-notifications) – short messages that pop up on a smartphone screen. Their functions often mirror email, informing users about promotions, new products, or delivery statuses. The advantage of push notifications is their higher likelihood of being seen compared to an email in one's inbox.

<Img
img="/uploads/web_push_notification_91cafd836a.png"
alt="Web push notification"
src="Web push notification with the news from The Washington Post"
/>
### SMS

Though digital marketing leverages new tools, [**SMS messages**](https://techjury.net/blog/sms-marketing-statistics/) continue to be utilized. Their main advantage lies in their high delivery rates to recipients. While a user might not always see an email on the same day, or push notifications might be turned off, SMS messages [**boast an open rate of up to 98%**](https://techjury.net/blog/sms-marketing-statistics/). Text messages can be received without internet access, just by being connected to the network. Although they lack multimedia elements like photos or videos, SMS ensures precise delivery of information. The downside of SMS is its cost, but that doesn't deter e-commerce from choosing this promotional channel.

<Img
img="/uploads/sms_newsletter_ebd9ed3b1a.png"
alt="SMS newsletter"
src="SMS newsletter with offers from Adore Me"
/>

### Messengers

Communication via messaging apps [**has taken the world by storm**](https://www.similarweb.com/blog/research/market-research/worldwide-messaging-apps/). Hence, e-commerce also leverages this tool, aiming to cover all communication channels. 

[**Messaging apps**](https://altcraft.com/blog/messenger-marketing) have become one of the touchpoints where customers engage with online store managers.

<Img
img="/uploads/social_media_buttons_on_a_product_page_8232e93e74.png"
alt="Social media buttons on a product page"
src="Share via social media buttons on a product page"
/>

They also serve to promote products on websites. For instance, within the WhatsApp Business* features, there's an option to create product catalogs.

Telegram channels have become a distinct channel for content distribution, capable of functioning as a company blog.

### Content

Content marketing is an alternative to direct advertising. Through sharing useful, engaging, and entertaining content, trust and connections with the audience are formed. This approach to internet marketing doesn't pressure the user; instead, it gradually introduces them to the company's products and explains how to use them.

Content is published in various formats: articles in corporate blogs, posts on social media, videos on YouTube, podcasts, and more.

<Img
img="/uploads/useful_content_on_social_media_a1506fdb45.png"
alt="Useful content on social media"
src="Useful content on social media from a small brand"
/>

### AR/VR technologies in e-commerce

Internet marketing and e-commerce are swiftly adapting to high-tech advancements, integrating them into their promotional strategies. Through augmented and virtual reality applications, customers can virtually try on clothing or visualize furniture within the actual interior of their homes. Products with 3D visualizations are already surfacing in [**Google search results**](https://evergreen.team/articles/3d-and-ar-in-serp.html).

<Img
img="/uploads/vr_technology_1e2d78f963.png"
alt="VR technology"
src="VR technology from L'Oréal brand"
/>

## Strategies for digital marketing in e-commerce

Strategies for digital marketing in e-commerce vary based on business goals and capabilities. Here are examples of some methods used by marketers, individually or in combination:

### Working on the website

It's a misconception that merely [**creating a website**](https://altcraft.com/blog/ways-to-keep-visitors-on-your-website) will autonomously generate revenue. For e-commerce, the website needs constant improvement for user convenience and search engine optimization.

**To ensure successful indexing by search engines:**

- Develop content that addresses user queries rather than solely focusing on keywords. Search engines are smarter, so deceiving them with phrases like "buy cheap sofa" in a text about cucumber planting won't work. Factors like time spent on pages and bounce rate (the number of users leaving the site) are considered.

- Improve loading speed and site usability. Users won't wait for heavy images or animations to load. If they can't quickly understand how to place an order, they'll likely move to competitors.

- Adapt the site for mobile devices. Prioritize user convenience – the easier it is to order from a smartphone, the higher the chance of conversion. In 2023, having a site not optimized for smartphones is odd.

SEO is a long-term strategy that brings relevant leads. However, continually optimizing your web resources is essential; otherwise, you'll be overtaken by others.
### Content marketing
Content marketing is another long-term strategy essential for building trust with customers, increasing loyalty, and explaining how to use your products.

[**Content marketing**](https://altcraft.com/glossary/content-marketing-what-is-it-for-and-how-to-launch-it) is also intertwined with SEO because articles can incorporate user queries and keywords. Engaging content encourages readers to stay on the page longer, boosting its performance.

Additionally, content marketing includes publications on external platforms—partner blogs, specialized sites, social media, podcast platforms, and YouTube.

### Мultichannel marketing

[**Мultichannel marketing**](https://altcraft.com/en/features/omni-channel-marketing) involves synchronizing communication with customers across various channels. This means that data from emails, push notifications, SMS, messaging apps, and other sources are collected into a unified platform. For instance, if a user initiates contact with a company via email and later reaches out about the same order via a messaging app, a well-integrated multichannel approach merges these two interactions into a single record, avoiding duplicates and inaccurate data.

Multichannel marketing is crucial for [**personalizing interactions**](https://altcraft.com/glossary/personalization-what-it-is-and-why-personalized-marketing-matters) with e-commerce customers. By tracking every step and order of a customer's journey, a company can analyze this information and curate product recommendations or offer tailored incentives. This approach boosts loyalty and encourages repeat purchases. Centralizing and managing this data is often facilitated by a CDP.

### Social media

Social media is a straightforward way to reach an audience, analyze their interests, and needs. It's also an effective platform to seamlessly present your product. Some brands gain popularity primarily through their social media presence. For instance, the clothing brand IRNBY became known due to its founder Anastasia Mironova. She started as a fitness blogger, amassing over a million followers, later venturing into sportswear, and now designs clothing for everyday life.

<Gallery>
<GalleryItem
original="/uploads/networking_on_social_media_6ec088891c.png"
thumbnail="/uploads/networking_on_social_media_6ec088891c.png"
/>
<GalleryItem
original="/uploads/present_your_product_in_social_media_27e06b1522.png"
thumbnail="/uploads/present_your_product_in_social_media_27e06b1522.png"
/>
</Gallery>

Currently, the IRNBY brand has over 300,000 followers, and this account attracts attention not only because of the personal brand of its founder. It showcases stylish and unconventional photoshoots, often featuring atypical models.

<Gallery>
<GalleryItem
original="/uploads/example_of_smm_3ee21ab96a.jpg"
thumbnail="/uploads/example_of_smm_3ee21ab96a.jpg"
/>
<GalleryItem
original="/uploads/stylish_and_unconventional_photoshoots_3998b489de.jpg"
thumbnail="/uploads/stylish_and_unconventional_photoshoots_3998b489de.jpg"
/>
</Gallery>

This case also falls under [**influencer marketing**](https://altcraft.com/blog/what-is-influencer-marketing-how-to-build-strategy), where promotion occurs through a well-known personality. For instance, Reese Witherspoon was an ambassador for the beauty brand Avon and frequently appeared in the brand's advertising campaigns and catalogs.

<Img
img="/uploads/influencer_marketing_from_avon_512ad0f8d2.png"
alt="Influencer marketing"
src="Example of influencer marketing from Avon"
/>

### Personalized offers

Offering customers exactly what they want increases the chances of a purchase. E-commerce companies create individual product selections based on user data to showcase items that might appeal to them.

<Img
img="/uploads/individual_product_selections_bcbcbe3f37.png"
alt="Individual product selections from Nordstrom"
src="Personalization from Nordstrom"
/>

Online streaming platforms excel in creating selections based on user interests, assessing previously watched movies and series. This engagement often retains subscribers for the following month or encourages them to upgrade their subscription for expanded content access.

<Img
img="/uploads/selections_based_on_user_interests_dd894a9950.png"
alt="Selections based on user interests"
src="Offering TV shows based on preferences"
/>

### The PPC method

The Pay-Per-Click (PPC) advertising campaign is a time-tested promotion method where an ad is placed on a specific platform (website). Conducting such a marketing campaign is cost-effective since payment is made solely for the number of clicks it receives, directing users to the advertiser's site. This type of advertising is tailored according to users' search queries.

This method swiftly generates traffic and enhances the visibility of a company's products. Creating PPC campaigns requires a thorough understanding of the audience and the correct selection of keywords.

### Promotion through users

The first method is leveraging [**customer reviews**](https://altcraft.com/blog/how-to-use-customer-feedback-to-increase-sales) from satisfied buyers. When ordering products online, the opinions of other buyers play a significant role, with [**90% of people reading reviews**](https://inclient.ru/stats-reviews/) before making an online purchase. Hence, brands encourage users to leave their feedback.

The second method of promotion is through referral programs, also known as "refer a friend." An individual recommends an e-commerce business's product or service to someone they know. When the referred person makes a purchase, the existing customer receives a bonus, such as a discount, special terms, a gift, and so forth.

## Five examples of automated email chains for e-commerce

### Order tracking

Keep the customer informed about changes in the order status until its receipt after the purchase is made.

<Img
img="/uploads/scenario_order_tracking_bf69578786.png"
alt="Order tracking"
src="Scenario Order tracking"
/>

### Reminder about “Favorites” items

Often, people mark items as “Favorites” but forget about them. Remind the customer about the things they've saved for later but haven't purchased yet.

<Img
img="/uploads/reminder_of_favorite_items_20af74f2b8.png"
alt="Reminder of favorite items"
src="Scenario Reminder of favorite items"
/>

### Increasing abandoned cart efficiency

Another example of customers forgetting is when they add items to their cart but don't complete the purchase. The reasons can vary: the person got distracted and forgot, didn't add a payment method and postponed the purchase, or didn’t have enough funds on the card, and so on. Remind the customer about the [**abandoned items**](https://altcraft.com/blog/how-to-reduce-cart-abandonment-rate) via email. For regular customers, you can motivate them to make the purchase by offering a pleasant promo code available only for the items in their cart.

<Img
img="/uploads/improving_the_efficiency_of_the_abandoned_cart_fc4f0bb739.png"
alt="Improving the efficiency of the abandoned cart"
src="Scenario Improving the efficiency of the abandoned cart"
/>

### Personalized offers in the user account

Provide the customer with the opportunity to feel special. When they log into their account, show them a banner with a personalized offer.

<Img
img="/uploads/personalized_offers_in_the_personal_cabinet_6b98581802.png"
alt="Personalized offers in the personal cabinet"
src="Scenario Personalized offers in the personal cabinet"
/>

### Store anniversary

A great opportunity to thank customers for staying with us. Prepare an exciting contest or prize draw [**to enhance their loyalty**](https://altcraft.com/blog/customer-loyalty) and trust in the brand.

<Img
img="/uploads/birthday_of_an_online_store_c7a9775f81.png"
alt="Birthday of an online store"
src="Scenario Birthday of an online store"
/>

## Summary

E-commerce internet marketing encompasses a variety of online tools and methods that promote products and services for companies primarily operating through the internet. The primary goal is purchasing, achieved through various strategies: SEO optimization and website usability enhancements, content marketing, omnichannel approaches, social media management, PPC campaigns, personalized offerings, and others.

E-commerce marketing employs a diverse range of promotion tools: email, push notifications, SMM, messenger platforms, online advertising (targeted, contextual, and others), SEO, augmented and virtual reality solutions.

Strategies and tools are tailored individually by each company, depending on their goals and resources.

**Product of Meta, recognized as an extremist organization in Russia.*

E-commerce marketing uses online strategies, like SEO, content marketing, PPC, email, social media, and online ads, to drive sales and engage customers.

examples-strategies-of-internet-marketin.png

About what e-commerce marketing is and what tools are used in this process.

Examples & Strategies of Internet Marketing in E-commerce

Internet Marketing in E-commerce: Examples and Strategies

<Video
url="https://www.youtube.com/embed/XsCGdGr-U64?si=iop0esLDWlg5NPH7"
/>


Demand for products and services isn't always constant. Some items are only purchased during specific seasons, such as sandals in summer, snow tires for cars in winter, or Valentine's Day gifts on February 14th. To maintain consistent sales, marketing strategies must adapt to these fluctuations in demand.


Seasonal marketing campaigns have limited, often very short, durations, making the preparation of such advertising even more critical than usual. Missing the timing or executing incorrectly may result in waiting a whole year for another opportunity.


This article explores the nature of seasonal demand, the advantages of seasonal marketing, and how to launch a temporary advertising campaign, with examples from various brands.


## What Is Seasonal Marketing


Seasonal marketing is the practice of adjusting a brand's advertising activity based on fluctuations in demand throughout the year. During certain periods, consumer activity decreases, while in others, it reaches its peak. Marketers must adapt their campaigns to align with customer behavior to achieve the best results.


Several factors influence demand, including changing seasons and weather conditions (e.g., the transition from warm to cold seasons), holidays, and other events. For example, insect repellents are purchased during the summer, but there is little demand for them in the winter. Similarly, chocolate snowmen and artificial Christmas trees are primarily sold in the lead-up to the New Year.


Seasonality is often categorized into three levels, assessed based on the extent of sales fluctuations.


<Table>
| Degree of seasonality | Percentage of sales drop | Example |
| ------ | ------ | ------ |
| **Moderate** | 10-20% | Such fluctuations in sales are typical for year-round products that are relevant throughout the year, such as household appliances and personal hygiene products. |
| **Vivid** | 30-40% | Seasonal demand often occurs at the beginning of the summer cottage season for construction materials because many people undertake such projects during the summer and spring. |
| **Harsh** | 50-100% | It applies to products that are relevant for a very short period. For example, holiday-themed gifts for Easter, New Year, and similar occasions. |
</Table>


### How to predict future demand for a product


To plan marketing activities effectively, you can calculate a seasonality coefficient to determine which months of the year experience increased or decreased sales.


This coefficient is calculated on a monthly basis using the following formula:

<Img
img="/uploads/season_marketing_formula_b617f3b24f.png"
alt="Seasonality factor formula in sales"
src="Seasonality factor formula"
/>


The result will look like this, for example:


<Table>
| Month | Seasonality coefficient |
| ------ | ------ |
| January | 0,82 |
| February | 0,84 |
|March | 0,83 |
| April | 0,91 |
| May | 1,03 |
| June | 1,15 |
| July | 1,32 |
| August | 1,27 |
| September | 1,03 |
| October | 0,95 |
| November | 0,92 |
| December | 0,93 |
</Table>

To calculate the average sales for a year, you need to sum the quantity of products (or services) sold each month and divide it by 12.

There are more in-depth methods to study demand seasonality. The ratio of the monthly market fluctuations to a year or a period over several years reveals the seasonality index.

## Why is seasonal marketing important

Marketers take the seasonal factor of demand into account to retain or attract more customers for businesses and make them the right [**offers**](https://altcraft.com/glossary/offer-what-it-is-what-for-it-is-used-and-how-to-come-up-with-it). Fluctuations in periods of buying activity also present opportunities for growth and development.

### What are the benefits of seasonal marketing

**Increased sales** due to a rush for specific products or services when customers have an urgent need. *For example, during a heatwave, there is a higher demand for seasonal services like air conditioner installations.*

Another scenario is the return of a "dormant" [**customer base**](https://altcraft.com/glossary/everything-about-the-customer-database) – people who are already familiar with your brand but are waiting for discounts on seasonal items or are making purchases because the product has become relevant to them. *For instance, someone may have subscribed to a sunglasses store's account in the winter, followed their content, and made a purchase in the summer.*


**Attracting new customers.** When there are shifts in demand from low to high, it becomes easier for businesses to acquire new customers as people are actively seeking specific seasonal products and services.

**Increased brand recognition.** Seasonal fluctuations in demand provide an opportunity for a brand to make a statement and enter the market with its offerings. Special promotions and creative advertising campaigns that set the business apart from others can enhance brand recognition and attract customers through various marketing channels.

## How to create a seasonal marketing campaign

The key rule of seasonal marketing is to prepare in advance. At the very least, start planning several months ahead to go through all the stages without rushing.

Here's what you need to do:

**1. Perform the analysis:**


- Review past seasonal advertising campaigns to identify shortcomings and adopt best practices, including techniques, tools, and platforms. This process is convenient and straightforward, especially if you have a [**customer data platform (CDP)**](https://altcraft.com/en) where all customer data and marketing projects are stored. 

- Understand the audience that purchases seasonal products, including their age, problems, interests, and more. Take into account the feedback provided by customers in the previous season. To create a comprehensive picture, outline your customer's journey. For instance, use tools like [**customer journey maps (CJM)**](https://altcraft.com/blog/stroim-customer-journey-map). 

- Examine user search queries made during past years, especially concerning the months when seasonal demand peaks.

**2. Set objectives, choose campaign dates, and establish evaluation criteria**, typically focusing on return on investment (ROI) to gauge the return on investment.


**3. Develop creative campaigns and determine the discount levels** you are willing to offer. The offers should be enticing and expected, as people are aware of seasonal discounts and often anticipate them.


**4. Select the tools and formats for implementation.** After analyzing past campaigns, you will gain insight into which communication channels are most effective, such as email, [**messengers**](https://altcraft.com/blog/messenger-marketing), or push messages. A creative approach to advertising will set you apart from competitors. Consider launching more than just a promotion; create a game, devise special themed content, or alter the design. Do not be afraid to introduce new tools like dynamic elements in emails or programmatic advertising. Test and select the best options.


**5. Launch the campaign and monitor the results.** Stay updated to make timely adjustments to your advertising efforts.

## Examples of seasonal brand campaigns

The most popular time for seasonal marketing is New Year and Christmas. For example, a nutrition store organized a 12-day promotion with special offers for customers each day.

<Img
img="/uploads/image7_1_4cd558a428.png"
alt="Holiday promotion for customers of nutrition store"
src="12-day promotion for nutrition store customers"
/>

Small online stores that sell handmade gifts do not miss the opportunity to launch sales and giveaways before the holidays when many people are looking for unique gifts at affordable prices. For example, this craft candle shop offers a Valentine's Day giveaway. One of the conditions is to tag three friends. This will attract people to the store based on recommendations from their friends.

<Img
img="/uploads/image10_fb4aea95c3.png"
alt="Example of promo action with a giveaway for St. Valentine's Day"
src="Promo action with a giveaway for St. Valentine's Day"
/>

A home goods store has launched an email newsletter with Easter sale that lasts until the end of the current day. Here, wordplay is cleverly used: "*An EGGsellent idea*."

<Img
img="/uploads/image9_16c55ad61d.png"
alt="Email newsletter with a smart wordplay"
src="Email newsletter with a smart wordplay"
/>

Traditionally, seasonal advertising campaigns often appear during the summer. People purchase items for leisure and update their wardrobes for vacations by the sea. Here, the newsletter informs about the arrival of the summer collection.


<Img
img="/uploads/image1_1_dd6ddbdd2e.png"
alt="Newsletter for summer season from Esprit store"
src="Newsletter for summer season from Esprit store"
/>

Another example of a marketing move for the summer is a summer sale with a discount using a promo code.

<Img
img="/uploads/image8_8394589fe1.png"
alt="Summer sale from a clothes store"
src="Summer sale from a clothes store"
/>

All brands, especially those selling children's and teenage products, hold promotions at the beginning of the school year. For example, here, the brand offers to dress and equip children at reduced prices, providing a $10 discount for every $40 spent.

<Img
img="/uploads/image2_1_6d3713dbdf.png"
alt="Sale at the beginning of the school year"
src="Sale at the beginning of the school year"
/>

Some brands organize seasonal sales for Halloween. These sales typically include thematic souvenirs, gifts, and items with holiday-themed symbols like pumpkins, candles, and witches. For example, in this case, the stationery company Moleskine offers discounts on special limited-edition series of notebooks and planners designed in a Halloween style.

<Img
img="/uploads/image5_f85a88a783.png"
alt="Real example of seasonal sales for Halloween from Moleskine"
src="Seasonal sales for Halloween from Moleskine"
/>

Practically all brands offer their hottest discounts on Black Friday. This is the Friday following Thanksgiving Day. Typically, the period of grand discounts starts in the afternoon on Friday and often lasts not just for one day but through the entire following weekend. During this time, you can buy some items for as little as 10-15% of their previous prices. For example, the company Sephora offers discounts of up to half the price of their products.

<Img
img="/uploads/image6_5ecda003f6.png"
alt="Seasonal marketing from Sephora offering Black Friday discount"
src="Seasonal marketing from Sephora offering Black Friday discount"
/>

## Summary

Seasonal marketing is a response by brands to changing customer activity throughout the year, influenced by factors such as seasonal changes, holidays, and other events. Demand fluctuations can range from moderate to pronounced, with some periods experiencing a significant drop in sales. Marketers need to be able to react effectively and have a well-defined plan in place to capitalize on high customer activity, boost brand recognition, and attract new customers.

Seasonal advertising campaigns are typically planned months in advance and begin with an analysis of past campaigns, the target audience, and user queries during specific months of the year. Evaluation criteria and promotions are developed, often including sales and discounts.

Seasonal marketing adapts to client demand, with advance planning for targeted campaigns, such as promotions, discounts to boost sales and brand recognition.

image3 (1).png

Explore the nature of seasonal demand, and how to launch a temporary advertising campaign, with examples from various brands.

Seasonal Marketing as a Profit-Boosting Tool for Brands

Maximize Sales: Seasonal Marketing as a Profit-Boosting Tool

<Video
url="https://www.youtube.com/embed/x_VgyveyKH0?si=ExAxd704ytU_6EsH"
/>

High sales and brand recognition are impossible without proper communication. Moreover, communication with customers and potential audiences should be regular and consistent. Only in this way will users form a unified brand image and trust will increase.

Companies communicate through online and offline channels, which are managed by different people. Therefore, it is important to establish common rules – a communication strategy to maintain consistency in the style and ideas that the brand conveys. This plan simplifies the work of employees and leads marketing to the desired results.

## What is a communication strategy

A communication strategy is the planning of how a company communicates with its audience to achieve business goals. Through various communication channels, the brand conveys specific information, values, and messages to lead customers to make a purchase, foster greater loyalty, and more.

<Img
img="/uploads/kommunikaczionnaya_strategiya_4af369fffa.jpg"
alt="Build effective communication with target audience"
src="It is important for a brand to build effective communication with its audience. Source: Gettyimages"
/>

A communication marketing strategy addresses specific objectives and aligns with the overall business goals.

**The key objectives of a communication strategy include:**

- Effective interaction with the audience.
- [**Increasing brand loyalty**](https://altcraft.com/blog/customer-loyalty) and recognition.
- Clear communication of information about products and services.
- Boosting company sales.
- Brand image support and prevention of reputation scandals.
- Setting apart from competitors.


Any communication strategy involves working with analytics (market and [**target audience**](https://altcraft.com/glossary/target-audience-why-to-define-it-how-to-classify-and-segment-it) research), brand image development, and engaging with customers through planned channels such as social media, television, outdoor advertising, and others.

## Types of communication strategies

**Communication strategies can be categorized as:**

- **Internal** – This type of strategy focuses on communication within the company, utilizing tools like messaging apps, email, platforms for employee communication, and more. 

- **External** – This encompasses the exchange of information within and outside the organization.

**Based on the perception of the brand, a communication strategy can be further classified into three types:**

**Verbal strategy** includes both spoken and written communication, emphasizing the use of words. Key communication elements in this category include email campaigns, [**messaging app exchanges**](https://altcraft.com/blog/messenger-marketing), video calls, and personal interactions with customers.

<Img
img="/uploads/verbal_brand_positioning_45d39bc9cb.png"
alt="Example of verbal brand positioning by Gail’s Bakery via telling the story of the company"
src="Example of verbal brand positioning by Gail’s Bakery via telling the story of the company"
/>

**Non-verbal strategy** involves communication where words are not used, and meanings are conveyed through body language and tone. It is particularly crucial in video advertising.

**Visual strategy** heavily relies on graphic elements, logos, videos, photos, and may incorporate communication tools from both verbal and non-verbal categories.

The creation of a communication strategy often follows specific formulas.


<Table>
| Formula | Description |
| ------ | ------ |
| **AIDA** (Attention – grab attention, Interest – generate interest, Desire – create desire, Action – call to action) | This is the most well-known model in marketing that first grabs the customer's attention, then arouses their interest, and eventually leads to the desire to buy and the actual purchase. |
| **AIMDA** (Attention, Interest, Motivation, Desire, Action) | The formula mirrors AIDA but adds an extra motivation to make a purchase. These can be various triggers: scarcity, limited time, and so on. |
| **ACCA** (Attention — grab attention, Comprehension — explain the product/service, Conviction — persuade that the client needs to take action (buy/subscribe), Action — call to action) | Another model that resembles AIDA but focuses on argumentation and persuasion. |
| **DIBABA** (Desire - creating desire based on needs, Identification - linking needs to the company's product/service, Damp - pushing the user to take action (make a purchase) and explaining how the company's offer will be beneficial to them, reAction - noting the customer's reaction to the offer, Buy - suggesting a purchase, Atmosphere - creating an atmosphere for the purchase). | Essentially, it's a step-by-step model for selling a product by studying needs and creating the necessary conditions. |
| **4P** (Product - showcase the product, Price - justify the cost, Promotion - market and define positioning, Place - choose sales channels) | It is the formula for the classic marketing mix. |
| **DAGMAR** (which stands for "Defining Advertising Goals for Measured Advertising Results") | According to this model, customers are led through stages of product awareness, comprehension, conviction of the need to purchase, and, in the end, a [**call to action**](https://altcraft.com/blog/what-is-cta). |
| **4A** (Awareness - inform about the product/service, Attitude - shape attitudes, Action - call to action, Action again - motivate repeat purchases) | Here, the emphasis is on customer retention and encouraging them to make repeat purchases. |
</Table>

## How to create a communication strategy

### 1. Analysis

Developing a communication strategy should begin with an analysis of your audience and the competitive environment. It's essential to assess the effectiveness of your current customer communication in existing conditions. This analysis will help you understand trends and identify ways to differentiate yourself. 


**Determine:**

- the state and size of the market;
- your current market position;
- the presence of direct and indirect competitors and their strategies.


At this stage, it's crucial to create detailed profiles of potential customers, including their demographics, interests, values, and what motivates them to purchase your products and services. To simplify this process, create a persona—a specific customer character to whom your brand directs its communication.


### 2. Objectives

Establish the outcomes you want to achieve with your marketing communication strategy. This could include increasing sales, achieving virality (the number of people who have seen your online resources or advertisements), mentions on social media or in the press. 

<Img
img="/uploads/arrow_target_success_concept_jasmin_merdan_f570d6d225.jpg"
alt="Set right goals to increase sales"
src="Setting the right goal is very important when creating a communication strategy. Source: Gettyimages"
/>

A proper objective is measurable and contains specific numerical targets. For instance, "increase conversion by at least 25%." This not only sets a clear target but also defines the resources required to achieve the specified metrics. You can also include additional goals, such as increasing brand mentions by a certain percentage or gaining more social media followers.

### 3. Positioning

During this stage, you formulate the core messages that the company wants to convey to its audience. The messaging should be oriented towards customer values and emphasize the advantages of the product or service. In other words, you determine the positioning of your brand - its place among other companies, products, and its [**unique selling proposition**](https://altcraft.com/glossary/unique-selling-proposition-usp). 

<Img
img="/uploads/Example_of_USP_830057ffdc.png"
alt="Example of USP from a furniture shop Haus"
src="Example of USP from a furniture shop Haus"
/>

A clear company image that is understandable to the users is created and maintained across all resources.


### 4. Timelines and budget

Calculate how much money and time will be required to implement the strategy.

Budget types include:

- Fixed monthly amount that does not change. 

- A percentage of the revenue generated. 

- Residual budget allocated after deducting operational expenses. 

- Flexible budget that is formed based on the needs and complexity of the set goals.

### 5. Media plan

The media plan outlines specific actions and tools for promotion across social media, traditional media, and other resources. It typically details what content is published, on which platform, and at what intervals. Advertising campaigns and their timing are specified, and channels and tools are selected (email marketing, personal sales, banner advertising, etc.). If influencer marketing is part of the marketing campaign, it is included in [**the media plan**](https://altcraft.com/glossary/media-plan-why-you-need-it-and-how-to-create-it).

### 6. Launch and evaluation

Monitor the development of your communication strategy in the field and adjust it as necessary. It's important to analyze the process in real-time to make corrections, eliminate ineffective channels, and ensure that your strategy aligns with your goals. Evaluate the results of your strategy and how well they correspond to your objectives.

**What's important in developing a communication strategy:**

- **Consistency and adherence to the planned approach.** It's a mistake to create a media plan but publish entirely different spontaneous posts. Flexibility is possible, especially when there is [**a newsbreak**](https://altcraft.com/glossary/what-is-a-newsbreak-its-types-and-how-to-create-it), but the overall strategy should be followed.

<Img
img="/uploads/newsjacking_by_IKEA_ffe3b4724b.png"
alt="Example of newsjacking by IKEA, Christiano at Euro 2020"
src="IKEA rebranded its bottle after Christiano Ronaldo removed Coca-Cola from his table at the press conference"
/>

- **Relying on data rather than just experience and ideas.** Creative ideas will emerge during the strategy development process, but it's essential to filter them through market conditions, audience interests (identified in the initial stages of strategy development), and business plans. 

- **Timely error correction.** Any plan, even one based on data, can be flawed and may not yield results during execution.

## Summary

A communication strategy is a brand's plan for engaging with its audience across various channels to achieve specific goals. It is created to increase sales, enhance loyalty and brand recognition, and maintain a consistent brand image.

Communication strategies can be internal (within the company) or external (targeting the public), and they can take the form of verbal, non-verbal, or visual communication. They make use of marketing models such as AIDA, AIMBA, ACCA, DIBABA, DAGMAR, 4P, and 4A.

To create a communication plan with your audience, it's essential to conduct analysis, set goals, determine a budget, select communication channels, and create a media plan. It's also crucial to make adjustments during the process and evaluate the results at the end.

A communication strategy is a plan to convey messages effectively to achieve business goals and enhance brand recognition.

kommunikacionnaya-strategiya.png

Develop your communication strategy to maintain consistency in the style and ideas that the brand conveys.

Communication Strategy, Notion and How to Develop It

What Is a Communication Strategy and How to Develop It

<Img
img="/uploads/image2_81af22abe6.png"
alt="2023 Business Roadmap: Strategies for Growth & Success"
/>


While marketers often concentrate on attracting potential customers and converting them into buyers, this approach rarely yields the anticipated results. [**Gartner**](https://www.gartner.com/en/sales/insights/b2b-buying-journey#:~:text=Your%20sales%20reps%20have%20roughly%205%25%20of%20a,Gartner%20guide%20for%20CSOs%20to%20learn%20how%20to%3A) agency has calculated that only 5% of purchases happen directly through the sales department, with clients interacting with companies through marketing channels such as social media, websites, blogs, and press releases.

As a result, the spotlight is on customer engagement and active online presence—these are the ways in which companies can distinguish themselves in the market and stimulate demand for their products or services.


## What is demand generation


When demand is generated, your company becomes well-known, your products and services are sought after, and customers proactively reach out to you for assistance.

**Demand generation** involves identifying potential customers who are unaware of the existence of your product but have a need for it. Your task is to spread information about your company and convince customers that you provide the solution to their problems.

<Img
img="/uploads/image4_f3d3abca36.jpg"
alt="Demand generation: notion, what is it"
/>

For instance, consider a potential customer in need of a CRM system. Your company specializes in developing exactly such a tool. The customer is unaware of your existence, compares solutions on the market, and leans towards purchasing a CRM from a well-known developer. Generating demand for your product means explaining the value of your CRM, highlighting how it differs advantageously from a popular brand.

While working on creating excitement and demand for your product, you simultaneously address several other objectives, namely, accelerating business growth and expanding your consumer audience.

## How demand capture and demand creation differ


The fundamental laws of economics state that demand begets supply. Demand is at the core of any business. The processes of demand capture and demand creation are similar but require different levels of effort and are directed towards different objectives.

Demand capture involves attracting people who are ready to make a purchase – those who have gone through [**the sales funnel**](https://altcraft.com/blog/what-is-sales-funnel) and are at the final stage. This includes customers closer to the end of the sales funnel. Your goal is to push them towards closing the deal. You don't need to invent anything new at this point since these are individuals who have already recognized the need for your product.

**Marketing strategies for demand capture in the B2B sector might include:**

- **Case studies:** demonstrating that your solutions work.

- **Media coverage:** gaining popularity in mass media ([**reviews**](https://altcraft.com/blog/how-to-use-customer-feedback-to-increase-sales), news articles, etc.) to convince consumers that your brand and products are valued by society.

- **Own resources:** a well-designed website, a social media presence, containing detailed information about your product, its functioning, price, and comparisons with other products in the market.

The demand capture process is closely tied to how a person has interacted with the product in the past. A positive experience is more likely to lead to conversion.

When it comes to demand creation, the first step is to identify the problem of the [**target buyer**](https://altcraft.com/glossary/target-audience-why-to-define-it-how-to-classify-and-segment-it) and answer how your company can solve it. Unlike demand capture, the process of demand creation involves customers in the top and middle parts of the funnel. It's particularly important to learn how to create demand for lesser-known and specialized companies.

<Img
img="/uploads/image5_a6bdca4de7.jpg"
alt="Marketing strategies to capture demand"
/>

**For demand creation, the following marketing strategies are used:**

- Increasing brand awareness through mass media, paid advertising, and PR.

- Building educational resources: blogs, in-depth posts on social media, informative articles.

## Crafting an efficient demand generation strategy
### Explore the market and audience


When you begin exploring the market, pay close attention to your competitors. Examine who comprises the target audience of your competitors, the products and services they offer, their pricing strategies, and the marketing approaches they employ. Answering these questions will help you identify your own advantages and refine your target audience.

Once you've defined your target audience, delve into understanding them. Demographic characteristics, interests, behaviors, needs, and preferences are all essential. Conduct surveys, organize focus groups, and analyze social media purchase data. Based on the collected information, segment your target audience. This will enable you to gain deeper insights into each group and tailor your strategy to meet their needs.

Regular [**surveys**](https://altcraft.com/blog/customer-satisfaction-survey-mistakes) are necessary since consumer preferences change rapidly. Gather feedback from customers to provide personalized offerings.


### Create a unique selling proposition


You should first understand and then communicate to consumers the value of your offering. To achieve this, define what makes your product or service unique. It could be instant delivery, high availability, or exceptional efficiency. Which attribute of your product will attract the most customers?

<Img
img="/uploads/image3_c8bdb65347.jpg"
alt="Unique selling proposition to engage customers"
/>

Devise a memorable call-to-action phrase. Your proposition should be clear and appealing. If you have the opportunity, test the proposition on real customers. Make adjustments if necessary based on the actual results obtained.

### Develop a marketing strategy

Outline a range of marketing channels that you intend to utilize to attract customers. These can encompass social media platforms, targeted or native advertising, PR campaigns, and [**influencer marketing**](https://altcraft.com/blog/what-is-influencer-marketing-how-to-build-strategy).

Remember: only post high-quality content on any platform. Strive to be proactive and anticipate the needs of potential customers. This strategy works well, as many consumers gather information online before engaging with a seller. Position yourself as an expert in the digital realm. This approach can foster a trustworthy relationship with customers right from the start.

[**Diversify your content**](https://altcraft.com/glossary/content-marketing-what-is-it-for-and-how-to-launch-it). Your audience includes those who are frequent users of your products or services, first-time visitors, and even those who are unaware of your existence. Your content should engage each group. Address frequently asked questions in your publications to save time during customer interactions.

Allocate a budget for your marketing strategy. Don't exhaust all your resources in a single promotional channel; an omnichannel approach is more effective. At this stage, it's essential to determine the resources needed to achieve your goals and identify where to acquire them.

Utilize marketing metrics and KPIs to assess the effectiveness of your actions. Analyze the results and make timely adjustments to your marketing plan.

### Drive demand stimulation


Harness promotions, discounts, lead magnets, promo codes, and other marketing tactics to stimulate demand effectively.

Craft an enticing [**loyalty program**](https://altcraft.com/blog/customer-loyalty-program) to make working with you even more rewarding for repeat customers. For others, this can serve as an incentive to engage with your company more frequently. Common loyalty program features include accumulating points, increasing discount tiers, or granting access to exclusive offers. Referral programs are also valuable for rapid scaling: customers refer friends and receive bonuses in return.



<Img
img="/uploads/image1_4e2b7099a2.jpg"
alt="Loyalty program to attract buyers"
/>

### Care for all your customers


Not all leads you attract will immediately convert into buyers. However, it's unwise to discount potential customers who didn't make a purchase right away. You've already invested time and resources into drawing them in, so why not continue engaging with them? It's entirely possible that they'll be interested in trying your product in the near future.

To nurture customer relationships, marketing teams should collaborate with sales departments. This way, your company can comprehensively influence potential customers. Maintain communication through email campaigns, extend holiday greetings, and make personalized offers to stay engaged with them.
## Summary

As you've gathered, successful businesses engage with every stage of the sales funnel. Significant results are achieved by those who strike a balance between lead generation and demand creation. This approach ensures that the company's influence touches all leads, from the beginning to the end of the funnel.

In this article, we've outlined general steps for crafting a demand generation strategy. Since each business is unique, adapt these recommendations to fit your goals and objectives.

Successful businesses balance lead generation and demand creation across the sales funnel, achieving comprehensive influence from start to finish.

image2.png

Discover how thriving enterprises strategically navigate the sales funnel, achieving remarkable outcomes through a delicate dance between lead generation and demand creation.

2023 Business Roadmap: Strategies for Growth & Success

2023 Business Roadmap: Thrive and Succeed

<Img
img="/uploads/programmy_loyalnosti_ad78c49ba6.png"
alt="Exploring Loyalty Program Options: Examples & Cases"
/> 


75% of customers choose companies that [**offer them bonuses**](https://www.zippia.com/advice/customer-loyalty-statistics/#:~:text=Customer%20Loyalty%20Statistics%20by%20Consumer%20Opinions&text=56%25%20of%20customers%20will%20stay,for%20a%20better%20loyalty%20program.). Additionally, 43% of the audience spends more money on brands to which they are loyal. Therefore, developing a loyalty program is a crucial aspect of marketing in various businesses. Retailers, marketplaces, cafes, restaurants, airlines, online services, and more build relationships with their audience through bonuses and other privileges.


Discounts, points accumulation, and cashback are offered to customers to motivate them to stay with the brand longer and make repeat purchases. A well-designed loyalty program also involves personalized offers, increasing the chances of conversion. 
In this article, we will discuss the various types of customer loyalty programs and provide examples from well-known brands.
## What is a loyalty program


Loyalty programs are a set of marketing methods designed to retain brand customers and motivate repeat purchases. They are used to build strong relationships with the audience, attract new customers, increase conversion rates, and average transaction value.


A well-developed loyalty system is also necessary for [**personalizing offers**](https://altcraft.com/glossary/personalization-what-it-is-and-why-personalized-marketing-matters) to customers. This approach sets the company apart from competitors, especially if the program is unique and easy to understand.


The development of a marketing strategy should include customer loyalty programs as a crucial element. These programs strengthen the brand, cultivate a fan base, and create repeat customers. To join the bonus system, individuals need to register by providing their last name, first name, phone number, email, date of birth, and so on. Participants are issued a physical or virtual card.


## Types of loyalty programs


The essence of [**a loyalty program**](https://altcraft.com/blog/customer-loyalty-program) is to provide significant benefits to the customer. This is accomplished through various methods that depend on the business's objectives and capabilities.


What types of customer loyalty programs exist:


<Table>
| Type | Description |
| ------ | ------ |
| Discount programs | The customer receives a card with a fixed or cumulative discount. |
| Points-based programs | After a purchase, the user gains the opportunity to accumulate points (bonuses). The mechanics vary; often, one bonus equals one unit of currency, but there can be other combinations. Additionally, the brand determines the percentage of the total bill that can be paid using these accumulated points. |
| Cashback programs | Returning a portion of the money from a purchase back to the customer. Brands provide cashback to the user's account, which can be used for other purchases within the same company. In the case of banks, cashback can be used for any goods and services. |
| Promo codes | The customer receives a promo code via email after fulfilling the loyalty program's conditions. Typically, this requires spending a specific amount or making a repeat purchase within a designated timeframe. |
| Tiered programs | The more a customer purchases, the higher their status becomes. Each new level represents an increase in discount, new privileges, and so forth. |
| Partner programs | Several brands create joint loyalty programs. For instance, bonuses are accumulated in the online store of Company A but can be spent at the cafes of Company B. There's also an umbrella program where services under one brand are unified into a single loyalty system. |
</Table>




[**Loyalty enhancement programs**](https://altcraft.com/en/features/loyalty-programs) are categorized as either closed or open. To join an open bonus system, one simply needs to register and provide their information. For a closed system, a condition must be fulfilled, such as being invited by a current member or making a payment (either a one-time purchase of a loyalty card or a monthly fee). In return for this, individuals are granted additional benefits, like access to exclusive sales, free shipping, and more.


## Loyalty programs: examples from brands

### Alaska Airlines: Mileage Plan


Alaska Airlines' loyalty program, known as Mileage Plan, is a well-regarded program in the airline industry. It offers travelers a range of benefits and rewards, including earning miles based on the distance flown rather than just the ticket price. This unique approach allows passengers to accumulate miles more efficiently, leading to various perks such as free flights, seat upgrades, and access to partner airline services. Mileage Plan's partnership with a diverse array of airlines and businesses expands its attractiveness, making it a compelling option for frequent flyers seeking value and flexibility.




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### Uber Rewards

Uber Rewards is Uber's loyalty program designed to provide added value to its frequent riders. By accumulating points through eligible rides and Uber Eats orders, users can unlock different membership tiers – Blue, Gold, Platinum, and Diamond – each offering escalating benefits such as priority support, flexible cancellations, and even price protection on certain routes. This program aims to foster customer loyalty and incentivize riders to continue using Uber's services, while also enhancing the overall user experience through exclusive perks and rewards.


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### Expedia Rewards

Expedia Rewards is a loyalty program tailored for travelers who frequently use Expedia for booking flights, hotels, and other travel services. With each booking, members earn points that can be redeemed for discounts on future travel reservations or other eligible purchases. The program offers three membership tiers – Blue, Silver, and Gold – each with escalating benefits like access to exclusive deals, bonus points, and potentially even free upgrades. Expedia Rewards aims to enhance customer engagement and encourage repeat bookings by offering tangible rewards and personalized travel experiences.



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### Ben & Jerry’s: Flavor Fanatics

The Flavor Fanatics reward program by Ben & Jerry's is designed to delight ice cream enthusiasts and foster brand loyalty. This program allows customers to earn points for every purchase, which can then be redeemed for free scoops, merchandise, or even exclusive event invitations. By catering to their customers' love for their products, Ben & Jerry's creates a sense of community and engagement, encouraging fans to not only enjoy their ice cream but also participate in a rewarding experience that goes beyond the treat itself.

<Img
img="/uploads/image4_879ac3681e.png"
alt="Flavor Fanatics reward program by Ben & Jerry's"
/>

### The North Face: XPLR Pass


The North Face's XPLR Pass is a loyalty program tailored for outdoor enthusiasts. By signing up for XPLR Pass, customers gain access to a variety of benefits such as exclusive discounts, early product releases, and invitations to special events. The program emphasizes engagement with the brand's outdoor ethos, encouraging members to participate in challenges and activities to earn points that can be redeemed for rewards. XPLR Pass not only fosters customer loyalty but also aligns with The North Face's adventurous spirit, creating a strong sense of community among outdoor enthusiasts.


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### Designer Shoe Warehouse: DSW VIP

DSW VIP is Designer Shoe Warehouse's loyalty program designed to cater to shoe and fashion enthusiasts. Members of the DSW VIP program enjoy various benefits such as earning points with every purchase, receiving birthday rewards, and gaining access to exclusive sales and events. The tiered structure of the program allows members to progress from Gold to Elite status, unlocking increasing levels of perks and rewards. By offering a personalized shopping experience and attractive incentives, DSW VIP encourages customer loyalty and keeps shoe lovers engaged with the brand.


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### The Body Shop: Love Your Body Club

The Love Your Body Club by The Body Shop is a loyalty program tailored for skincare and beauty lovers. Members of the Love Your Body Club enjoy numerous benefits, including earning points with every purchase, receiving a birthday gift, and gaining access to exclusive promotions and events. The program's focus on ethical and sustainable practices aligns with The Body Shop's brand values, resonating with conscious consumers. By offering rewards that align with their commitment to cruelty-free and environmentally-friendly products, the Love Your Body Club fosters brand loyalty while also encouraging positive shopping choices.




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### Hugo Boss Experience

Hugo Boss Experience is a loyalty program crafted for fashion enthusiasts who appreciate the brand's high-quality offerings. Members of the program receive exclusive benefits such as personalized styling advice, early access to collections, and invitations to VIP events. The program's emphasis on providing a tailored and elevated shopping experience resonates with Hugo Boss's premium image. By offering unique perks that cater to their discerning customers, the Hugo Boss Experience program aims to strengthen customer loyalty and maintain a strong connection with their fashion-savvy audience.




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### Lancôme Elite Rewards

Lancôme Elite Rewards is a loyalty program designed to engage beauty enthusiasts who value luxury skincare and cosmetics. Members of the program are treated to a range of exclusive benefits, including earning points on purchases, receiving personalized beauty consultations, and gaining access to limited edition products. The program's focus on personalized skincare advice and premium rewards aligns with Lancôme's commitment to enhancing their customers' beauty routines. By offering tailored experiences and coveted rewards, Lancôme Elite Rewards aims to foster brand loyalty and provide an elevated beauty shopping experience.




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### IKEA Family

IKEA Family is a loyalty program tailored for home and furnishing enthusiasts who frequent IKEA stores. Members of the IKEA Family program enjoy a variety of benefits, including special discounts, product offers, and even free coffee during store visits. The program's emphasis on providing value and savings aligns with IKEA's affordability and practicality-focused brand image. By offering perks that resonate with their target audience, the IKEA Family program aims to build customer loyalty and enhance the overall shopping experience for those seeking stylish yet budget-friendly home solutions.


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## Summary


Loyalty programs are a set of marketing tools that retain customers, motivate repeat purchases, and establish ongoing communication with [**the target audience**](https://altcraft.com/glossary/target-audience-why-to-define-it-how-to-classify-and-segment-it). Within the context of loyalty systems, users are granted bonuses, cashback, provided with consistent or temporary discounts, and sent promotional codes. Customers use these benefits for new orders from the brand or at other locations as stipulated by the program, while the company collaborates with partners.


Brand loyalty systems can be either open (available to all and free) or closed, where entry is possible only through payment or upon fulfilling certain conditions.

Loyalty programs are marketing strategies for encouraging repeat purchases by offering discounts, rewards, and exclusive perks based on customer engagement.

image15.png

Discover how businesses are weaving a tapestry of rewards and discounts to keep clients coming back for more. Unveil the strategies behind building lasting connections with brands.

Exploring Loyalty Program Options: Examples & Cases

Exploring Loyalty Program Options: Captivating Cases

<Img
img="/uploads/alfa_Figures_50eea3c0a9.png"
alt="AlfaStrakhovanie: Increasement of Profit by 714% in 4 Years"
/>

AlfaStrakhovanie is the largest private insurance company in Russia, offering a wide range of insurance programs for individuals and corporate clients.

Since 2019, the company has been engaged in marketing communication automation through the Altcraft Platform. In the first year, the marketing team achieved excellent results, with a 42% increase in CRM marketing profits. We discussed how they achieved these results [**in this article**](https://altcraft.com/blog/case-how-altcraft-platform-helped-top-insurance-company-increase-sales).

Currently serving over 30 million customers, utilizing 15 communication channels, and processing data from 80 repositories, AlfaStrakhovanie has successfully adapted Altcraft Platform to its scale, automating customer communication and freeing up time for the development and implementation of new strategies. Learn how AlfaStrakhovanie enhances customer communication with the help of the Altcraft Platform.

Currently, AlfaStrakhovanie serves over 30 million customers, utilizing around 15 communication channels and processing data from 80 repositories. Their Customer Journey Map (CJM) consists of 200 touchpoints. Altcraft Platform has successfully adapted to such a scale, enabling the specialists at AlfaStrakhovanie [**to automate customer communication**](https://altcraft.com/blog/marketing-automation-for-insurance-companies) and free up time for the development and implementation of new strategies. 

We share how AlfaStrakhovanie improves customer communication using the Altcraft Platform.

<Img
img="/uploads/Profit_of_Alfa_Strakhovanie_from_CRM_marketing_min_0be7547221.png"
alt="Profit of AlfaInsurance from CRM marketing (comparing with 2018)"
/>

## Why they chose Altcraft Platform

**1. The ability to work in tandem with the internal CDI system without data transmission to cloud services.** A key priority for insurance companies is customer data security. Altcraft, as one of the few providers in the domestic market, offered an On-premises solution, allowing AlfaStrakhovanie to have full control over their data by deploying the software within their own infrastructure.
 

**2. The capability to gather all data in one place and manage marketing processes in a unified interface.** Within Altcraft Platform's Customer Data Platform (CDP), a unified profile is created for each client based on their personal and behavioral data. This enables a better understanding of customers and facilitates more personalized communication.
 

**3. Сustomization functionality.** Altcraft Platform also provides additional communication channels with clients. The willingness of the Altcraft team to tailor the platform to meet customer requirements played a crucial role in the decision-making process.

## Tasks and results

The customer journey in AlfaStrakhovanie consists of over 200 touchpoints. By configuring scenarios and trigger campaigns in the platform, the company automated customer interactions at each of these touchpoints. Let's discuss the tasks it solved.

### Task 1: Customer retention and increasing repeat sales

Retaining existing customers is a less costly endeavor compared to acquiring new ones. Therefore, a significant portion of marketing communications in AlfaStrakhovanie is focused on addressing this task.

Currently, over 500 triggers are active, with thousands of message variations across various communication channels. Among the implemented mechanisms are:

- **Abandoned calculator.** If a customer starts entering data into the insurance cost calculator but fails to complete the action, the system automatically sends them a reminder with an offer to finish the calculation.

- **Bonus accrual.** After successfully completing a transaction, customers are awarded bonus points. The company then sends them an email notifying them about the accrued points. The email includes an individualized link to other insurance services that may be of interest to the customer.

- **Customer reactivation.** If a customer has not made repeat purchases for an extended period, the company sends them an email with a link to a personalized survey. The survey aims to identify the reasons why the customer is not interested in renewing the service. After completing the survey, the user receives a discount on their next purchase.

**Policy renewal**

For effective policy renewal, the company actively engages with the customer at every stage. The following triggers are used:

**1. 30-Day policy expiration reminder.** One month before the insurance policy expires, the customer receives an email offering the option to renew the service.

**2. Policy expired notification.** On the day the policy becomes invalid, the company sends a notification to the customer.

**3. Abandoned payment.** If a customer starts the policy purchase process but does not complete the transaction, they receive a reminder email.

Each trigger sends a message with an individualized link. When clicked, the customer is redirected to a page where they can quickly renew the service. From the customer's perspective, this simplifies the renewal process. Additionally, timely reminders minimize the risk of missing the deadline and being left without coverage. From the company's standpoint, these triggers increase the likelihood of a successful transaction.

**Cross-Selling**

AlfaStrakhovanie offers 35 primary products and over 50 additional ones. With such a wide range of options, [**cross-selling**](https://altcraft.com/blog/what-is-cross-selling) becomes one of the most effective tools for increasing repeat sales.

However, it is important to offer products that genuinely interest the customer when implementing this strategy. For example, if a person purchases mandatory motor insurance (MTPL), they can be offered comprehensive motor insurance (CASCO). And if they have obtained "Insurance for traveling abroad," they might find "Green Card" service useful.

AlfaStrakhovanie creates a list of relevant products within its internal CDI system, utilizing machine learning. Based on the user's previous actions, ML algorithms generate the best recommendations from the available options.

To timely deliver such an offer, a scenario is set up in the Altcraft platform. After the customer completes the insurance service purchase, they are awarded points and receive an email. Three days later, the platform checks which specific product the customer has purchased. The CDI system gathers relevant additional offers and transfers the data to the platform. Based on this data, a template is generated, and an email with a list of recommendations is sent to the customer. Subsequently, the platform tracks the customer's actions after receiving the email and transfers the data for processing in the CDI system. 

<Img
img="/uploads/alfa_Cross_selling_76ee17bf66.png"
alt="Cross-selling"
/>

Policy renewal, abandoned calculator, cross-selling, and customer reactivation — all these mechanisms are automated and continuously work to retain customers and stimulate repeat sales. As a result, in 2022, the level of repeat sales increased by 98%.

### Task 2: Increasing subscriber engagement

When it comes to email marketing, the level of subscriber engagement reflects how actively subscribers interact with the emails. Metrics such as open rates, click-through rates, and conversions are important indicators to consider.

Personalization is a key factor in driving customer engagement, and AlfaStrakhovanie has always excelled in this aspect. As previously mentioned, Altcraft Platform has been working in tandem with the company's internal CDI system from the beginning. All emails in the platform are generated based on data from this system. Let's explain how it works.

The CDI system segments users into micro-segments for each touchpoint based on various parameters: active products, customer interactions, insurance claims, website calculation stages, psychographics, and more. Personalized links and datasets are generated based on this segmentation and later transmitted to the platform. The platform performs additional customer load segmentation and triggers activation. As a result, customers receive the best offer from over 1 billion possible combinations. The average click-through rate (CTR) for such messages is 39%.

However, the company didn't stop at personalized email campaigns. The next step was to increase email open rates. Two different techniques were used for transactional notifications and promotional mailings.

**Transactional messages** contain important information, so it is crucial to ensure that the customer receives them. A [**cascade mailing**](https://altcraft.com/blog/cascade-campaigns) approach became an obvious solution, and the AlfaStrakhovanie team implemented the following scenario:

<Img
img="/uploads/alfa_Cascade_campaign_50db3a57f5.png"
alt="Cascade mailing"
/>

The message is sequentially sent to various channels. If the recipient does not open the message in one channel, the platform sends the same message to another channel. This process goes from the cheapest channel to the most expensive one. If the message still doesn't reach the recipient, a specialist from the call center will contact them.

By using cascading distribution, marketers have achieved almost 100% message open rate. 

To increase the open rate of **promotional campaigns**, marketers have employed a new ML module in the Altcraft Platform called [**"Best Send Time."**](https://altcraft.com/blog/altcraft-platform-updates-machine-learning-new-reports-whatsapp) Machine learning algorithms analyze the history of message openings in campaigns and determine the day of the week and hour when a specific profile is most likely to read the message. Therefore, each subscriber receives the email at the optimal time for them.

As you can see, conservatism is not characteristic of AlfaStrakhovanie marketers. They are always ready to embrace new technologies in their strategies, which is why their subscribers have long been receiving [**AMP emails**](https://altcraft.com/blog/amp-emails-what-they-are-their-types-why-required). The level of interaction with such emails is much higher than with regular HTML versions.

### Task 3: Attracting new clients 

To find new clients, the company expanded its coverage by setting up new communication channels - Telegram Group and Telegram Bot.

Through Telegram Group, AlfaStrakhovanie's specialists automated the posting of posts in its official channel. There they report on important news and share useful tips in the insurance industry. 

The main task of the channel is to increase brand recognition and gain the trust of potential clients. 

As for Telegram Bot, it performs the function of a support service. Here, messages are sent directly to the user, but they should first start a dialog with the bot. After that, their data gets into Altcraft's database for further communications. 

In addition, lead generation takes place through omnichannel scenarios in the platform. Through API requests, contacts of potential customers are transferred to agents, brokers and the call center. At the same time, the collected data allows for the automatic creation of a personalized script for each lead.

## Conclusion

The company "AlfaStrakhovanie" has been automating marketing communications with customers through the Altcraft Platform for over four years. The collaboration can be considered successful as the profit from CRM marketing consistently increases year after year. In 2022, it grew by 98%, marking a 44% increase compared to 2021.

How the insurance company AlfaStrakhovanie increased the level of repeat sales and subscriber engagement using the Altcraft Platform.

AlfaStrakhovanie case study 2023.png

Read how the insurance company increased repeat sales and subscriber engagement through marketing automation.

AlfaStrakhovanie: Increasement of Profit by 714% in 4 Years

How AlfaStrakhovanie Group Increased CRM Marketing Profit by 714% in 4 Years

<Img
img="/uploads/storytelling_fbfef55813.png"
alt="Let the Client Feel Like a Hero: How Storytelling Works"
/>

Many people wonder: how do stories work in marketing? What is the secret of effective selling storytelling? When the messages embedded in a selling story align with the customers' values, such storytelling boosts sales. 

## Advantages of storytelling

Stories are the oldest tool of communication, dating back to the oldest cave drawings 44,000 years ago. Our ancestors used stories to share and preserve their history, etching them onto durable stones. Marketing has taken up storytelling because of its unique ability: tales transport people away from ordinary reality, capturing attention and igniting dreams and desires.

Additionally, storytelling:

- **Increases brand recognition**

Bright stories become strongly associated with the storyteller. Storytelling works in various formats such as advertisements, videos, social media posts, and emails. Scientifically, [**it has been proven**](https://www.tandfonline.com/doi/abs/10.1080/02650487.2014.994803) that storytelling increases brand recognition regardless of the presentation format. One prominent example is [**Super Bowl**](https://www.mailjet.com/blog/email-best-practices/super-bowl-email-marketing/) commercials. Thousands of people remember this story, they laugh and cry, and are inspired by the main character's actions. This is precisely how stories work, by impacting people's emotional perception.

- **Builds trust between the company and the customer**

A good presentation adds credibility to the company: it appears more reliable, and the product seems of higher quality. It's no wonder that government organizations conduct extensive research on the impact of storytelling on consumers. Politicians and public figures deliver speeches with elements of storytelling from high platforms to influence entire nations.

Since storytelling is effective in such matters, achieving marketing conversion becomes an even less challenging task. Standard objectives that marketers work on (such as guiding customers towards a purchase, motivating them to subscribe to a newsletter, or encouraging them to download [**a lead magnet**](https://altcraft.com/blog/what-is-a-lead-magnet)) can be achieved more quickly with the help of stories.


- **Establishes an emotional connection**

Harvard scientists have discovered that an emotional connection with a customer is more valuable than their satisfaction from a previous purchase. According to Gerald Zaltman, a professor at Harvard Business School, the majority of purchasing decisions (around 95%) are made at a subconscious level, driven by emotions.

Marketing tools often rely on emotions, and storytelling is designed to evoke them. In their work, marketers study the "pain points" and needs of their target audience, as well as their motivations and aspirations, all of which are emotionally charged factors.

This applies not only to commercial organizations but also to charity foundations and non-profit enterprises, which actively utilize emotionally driven narratives to draw attention to their goals. An example is [**the video campaign by Greenpeace International**](https://www.youtube.com/watch?v=TQQXstNh45g&embeds_origin=https%3A%2F%2Fwww.mailjet.com&feature=emb_imp_woyt).

- **Stimulates social media activity and SEO**

An emotional response is highly motivating for readers to like a post or share it on social media. High-quality backlinks for better search engine indexing often come from social media platforms.

There is nothing better than telling a compelling story. If it is captivating, it will be passed from person to person. There was a time when stories were primarily transmitted through word of mouth. Today, we simply click the "Share" button or share a link to a publication.

Digital marketers release annual digests, informing us about the latest trends in content marketing, publishing rankings of the most popular engagement methods, and devising new optimization strategies. However, in reality, it is storytelling that delivers the best results.

- **Adds authenticity to the brand**

Mere claims from company representatives about the unique features of their products no longer attract anyone. You can talk endlessly about the functions and benefits of a product, but without evidence, it will remain mere boasting. Storytelling, especially when based on real advantages of a product or service, sounds trustworthy.

In the promotion of products, authenticity in storytelling is achieved by avoiding jargon and profanity while expressing genuine empathy towards potential customers. By doing so, a company demonstrates that it understands the feelings and experiences of the customer and the journey they may have gone through.

## The customer has their own hero's journey

There is only one type of story that doesn't work, where the company is the protagonist of the narrative. Good stories put the customer as the main hero.

Almost everyone knows someone, a relative or acquaintance, who can talk endlessly about themselves. At what point does your patience run out? The patience of an audience is even more fragile. If a company constantly brags about itself, people won't want to listen. Effective marketing storytelling is distinguished by making the customer the main character, and the journey they go through becomes their hero's journey.

The "Hero's Journey" storytelling formula was invented by the renowned professor Joseph Campbell. The story originates from Greek mythology and continues in the legends of Native Americans. Similar motifs are present in the works of Tolkien, Marvel films, and Pixar movies.

What unites all these events? The hero's journey.
## What the hero's journey is

The main protagonist embarks on a great journey: they leave home and venture into adventures, overcome challenges, find loyal companions, and defeat enemies. Having achieved their goal, the hero acquires a valuable reward and returns home. Have you heard this a hundred times? Indeed, the story sounds very simple and familiar. These qualities are precisely what is needed in marketing storytelling.

### The character development can be summarized in the following steps:

- The hero lives an ordinary life, but is called to venture out of their comfort zone.


- The hero receives a call to embark on a journey.


- Initially, the hero refuses to join the journey.


- The hero's familiar world starts to crumble.


- The hero encounters a mentor: someone older and wiser who compels the hero to follow them.


- The hero gains allies, acquiring friends and enemies.


- During the journey, the hero experiences a loss that challenges the success of the entire operation.


- The hero overcomes a significant trial and emerges victorious.


- The hero is rewarded for their deeds.


- The hero returns home with triumph, transformed into a different person.

This framework should be applied to your stories. To make the story engaging, it is important to listen to what is being said within your company about your customers.

Visualizing the customer experience can be facilitated by creating a detailed profile of the target audience and developing a customer journey map. You will be surprised to discover clear parallels between the hero's journey and the journey of your typical customer.
## Examples of using storytelling in marketing

Here are five examples of well-known global advertising campaigns that used storytelling:
### Year 1984. Apple

39 years ago, Apple showcased the hero's journey in a one-minute TV commercial. The Super Bowl advertisement became a true sensation. The plot unfolds in a dystopian reality where a leader "indoctrinates" the audience from large screens. It bears a striking resemblance to the events described in George Orwell's novel "1984".

The main character is a young woman in sports attire who is being pursued. She hurls a hammer in one of the screens, causing it to explode. A voiceover announces the release of *Macintosh*.

Even if you caught only the end of the story, your imagination fills in the gaps, and tells you what happens in the commercial. You experience the story through yourself, understanding the hero as if you know her backstory and what she's risking it all for. Then *Apple* declares that everything will soon change: the world will no longer be the same.

<Img
img="/uploads/image2_1ad95cbf44.jpg"
alt="Apple"
/>

*Apple* has always cared about individuality in the world. The company stands against the monotonous dependence on computers. It conveys to the audience the value of standing out, being brighter, and shining. This message is still evident in their advertising campaigns up to nowadays.

### Patagonia

Customers of [**the outdoor gear brand Patagonia**](https://www.patagonia.com/stories/) become the heroes of the company's blog. The blog revolves around the slogan: "Stories to get you out there"

Each blog post is dedicated to describing the adventures of ordinary people who do extraordinary things for the sake of environmental conservation or seeking a simple dose of adrenaline. The stories are written in an accessible language and do not contain a direct call to purchase a specific product. Farmers fighting against chemicals, mountain travelers, and those who clean up the coast of Chile from trash – all of them wear clothing with *Patagonia* logo.

The company itself is rarely mentioned in the stories, nor are its products. The effectiveness is achieved by establishing an emotional connection with consumers. The stories captivate the viewers, making them think, "They are ordinary people, just like me, and they wear such clothing."

### Square

*Square* is a video tool for creating videos. The platform itself is promoted through storytelling. Square's marketers launched a film series called "For any dream," which showcases the development of small businesses and the entrepreneurs behind them.

The storytelling often begins with the story of an ordinary person who has a dream. You won't find any mentions of *Square*'s products or colorful descriptions of how the platform specifically helped a particular business thrive. The videos are entirely dedicated to the real heroes – those individuals who have overcome all challenges and brought their dreams to life.

### Year 1981. Lego
And again the 80s: it was then that *Lego* launched an advertising campaign based on photographs of children with *Lego* brick toys. Although the focus was on children, this ad was aimed at parents. It made them think about how to raise a curious and creative child. The company didn't stop there.


<Img
img="/uploads/image6_f877e3f279.png"
alt="Lego"
/>

Later on, an advertising campaign with the slogan [**"Never stop playing"**](https://www.lego.com/en-us/rebuild-the-world/never-stop-playing?icmp=LP-SHMBS-Standard-90th_Anniversary_MB_small_Never_stop_playing-OC-NO-SYSIW0UKTU) emerged. In the videos, teenagers and adults showcased their talents. This created a complete cycle of the hero's journey, emphasizing how Lego contributes to the development of skills and abilities, and how it ultimately impacts people's lives and careers.

### Salesforce and Trailhead

Educational platforms are an excellent way to take on the role of a mentor for followers. *Salesforce* offers the hero educational content [**at the center of Trailhead**](https://trailhead.salesforce.com/en) to "prepare customers for the future." The company's marketers understand that the more people learn to work with the platform, the more likely enterprise professionals will prefer it.

To kick-start the journey on the *Trailhead* homepage, there is a description of the reward the hero will receive upon completing the journey and acquiring *Salesforce* knowledge. The customer only needs to choose a profession to study and embark on the "trail".

## How to use storytelling in email marketing


It's very convenient to tell stories in email. Storytelling in [**email campaigns**](https://altcraft.com/blog/types-of-email-newsletters-and-what-are-they) is effective because they have unique qualities: relevant information comes to the right person via email at the most suitable time. Thus, the recipient (your current or potential customer) becomes the hero of the story, and the moment they receive the email coincides with the time the hero's journey begins.

## Types of emails suitable for storytelling

- **Welcome emails**

Many journeys start with receiving a letter. Harry Potter was handed a Hogwarts invitation letter. Princess Leia from "Star Wars" placed a hologram in a droid's memory with a plea for help.

Come up with such a welcome letter that will lure the recipient to go on a long journey with your company. Put the customer at the center of your world, let them become the hero.

The success of a welcome email depends on whether or not you establish a trusting relationship with the customer, or end up in their spam folder.

 

<Img
img="/uploads/photo_2023_05_11_10_10_12_086e7218fd.jpg"
alt="Welcome emails"
/>

- **Onboarding emails**

Onboarding emails should be helpful and encouraging. In them, the company takes on the role of a mentor, helping the hero overcome challenges and achieve their goals. The hero is about to embark on a difficult journey, but you have products that can assist them. And first and foremost, teach them how to use them.

When a customer achieves their first result, it may only mark the beginning of their journey. Signing up for a trial session or making an initial purchase is not an end in itself, but these events place the hero in the midst of their journey.

From this point on, email messages become guides: they show which way to go and provide information at the right moment.


<Img
img="/uploads/image7_63b5dc7e28.png"
alt="Onboarding emails"
/>

- **Informational newsletters**

An informational newsletter is the best way to tell a reader a story. Every piece of content in such emails is both a hint and a riddle. If the narrative appeals to the customer, they will follow it. An informational newsletter will open up a horizon of events and show them the right path.

This tool can be compared to Q from the James Bond movies, who would introduce new spy gadgets and devices.



<Img
img="/uploads/image1_c53ef38117.png"
alt="Informational newsletters"
/>

- **Confirmation emails**

Sometimes it's difficult to determine where the hero's journey begins and ends. For example, a person comes for a test drive or a property viewing. The customer has already made an effort and taken a certain action, but the journey is just beginning. The hero is sure to be rewarded: a new car or a desired apartment.

Order confirmation or delivery confirmation emails typically include details about the order placed. If the order has not yet been paid for, it's appropriate to dispel any doubts the person may have about their choice in such an email.

When the purchase is complete, congratulate the buyer on their long-awaited acquisition. Thank the customer for their pleasant interaction and leave them with the most positive memories of your company.

Then, the next time you send a person a personalized offer, they will embark on a new journey with you.


<Img
img="/uploads/image3_293318d7b5.png"
alt="Confirmation emails"
/>

- **Reactivation emails and reminder emails**

Remember, it's natural for people to have doubts. That's why the hero's journey includes steps like the "refusal of the call to adventure" and the "moment of despair" when the hero considers abandoning the journey. Customers of your company also go through such moments. A timely reminder email will help keep the hero from giving up.

If the hero has indeed abandoned the journey, [**reactivation emails**](https://altcraft.com/blog/how-to-reactivate-inactive-email-subscribers) can come to the rescue. Don't immediately give up on the faltering hero; give them a second chance.


<Img
img="/uploads/image5_a1ad25cb21.png"
alt="Reactivation email"
/>

Of course, storytelling works in absolutely all promotion channels, in any industry, and for any clients. It is only necessary to stay to the basic principles of creating stories that we have described in this article. 

And now it's high time for you to write a breathtaking journey for your hero!

Storytelling works in all promotion channels, in any industry, and for any clients. It is only necessary to stay to the basic principles of creating stories.

storytelling.png

To tell the stories in order to boost sales? Seriously? Read on and discover how it works!

Let the Client Feel Like a Hero: How Storytelling Works

<Img
img="/uploads/gejmifikaciya_v_marketinge_d50cd0e664_2f1fd062fa.png"
alt="How to Use Gamification in Marketing"
/>

In the world of an "epidemic" of [**banner blindness**](https://altcraft.com/glossary/banner-blindness-its-causes-and-how-to-deal-with-it), users are increasingly not noticing online ads and other types of advertising on the internet. This behavior is typical for 86% of website visitors. 

Brands have to find new ways to attract the audience's attention and engage users in their content. One of such tools is **gamification**, i.e. using game elements in marketing campaigns. Gamification is more noticeable than regular advertising and often more effective. 

From the article, you will learn what gamification is, its pros and cons. We will also provide examples of game mechanics that well-known brands are already using.

## What is gamification

Gamification in marketing is the use of game elements to promote a company, its products, and services. Typically, quizzes, quests, competitions, lotteries, and giveaways are used.

*For example, a customer doesn't just accumulate points through a [**loyalty program**](https://altcraft.com/blog/customer-loyalty-program), but enters a world where everyone has their own rating. They progress from level to level and earn points that can then be converted into a discount.*

Elements of gamification are used in retail for promoting mass-consumer products, education, and even banks create games to engage customers in serious financial topics. Gamification is a method that has almost no limitations in terms of business directions. Gamification tools are even used in B2B sales.
Games work in two main directions:

- **Attracting new users**, when the goal of gamification is to draw a user's attention to the brand's content in the general flow and leave contacts (lead generation).


- **Involving the user in the product**, so that customers stay with the brand and do not leave. This is especially relevant for language learning services, where users do not drop out of lessons, including due to the thrill of wanting to reach the next level and get a higher rating. That's why gamification is so popular in education.

Games may seem to be a kind of a "magic pill," but actually they are not. Gamification in business is an interesting promotion method that can breathe life into any marketing campaign, but it also has its drawbacks. We will tell you about the pros and cons of gamification.

### Advantages of gamification

- It makes the brand more recognizable, especially when the gaming project becomes "viral".


- Gamification techniques engage users and keep them staying with the brand. Playing is more interesting than just receiving content in a newsletter.


- It increases sales: digital gamification is more noticeable than standard advertising and it brings leads that convert into sales. Also, brands offer additional products through games and increase the average check.
 

- It sells brand products natively: it seamlessly integrates them into the game plot.
 

- It increases loyalty, because the company communicates with users through games, draws attention, and creates emotions.

### Disadvantages of gamification

- Gamification technology is not equally useful for all businesses. The audience of serious companies simply won't understand why you launched a game. Such a move is unlikely to bring results.


- It is also important to evaluate the resources of the brand, because gamification of processes is an investment of money and time in its creation. Often you need to involve technical specialists or a whole team (your own or invited).

## How to create gamification in marketing

The steps for implementing game mechanics in marketing may vary across different businesses. The process could look like this:

1. Set a goal and determine how the use of gamification will solve your business objectives. Do not choose this tool just because you want to be trendy.


2. Choose your [**target audience**](/glossary/target-audience-why-to-define-it-how-to-classify-and-segment-it): you need users who will be interested in gamifying their life in the brand's world.


3. Think about the format: a game with a set of points/rankings, quiz, quest, competition, lottery, and so on. Also, decide which marketing channels you plan to use for promotion: [**messengers**](https://altcraft.com/blog/messenger-marketing), SMS, email newsletters, and others.


4. Define what motivation the user will have to participate in the project: what they will receive (bonus, emotions, status).


5. Write a scenario with detailed actions for the user. This is also where the mechanics of gamification are thought out, where it is determined what the user will receive bonuses for and how much, and how to use them further.


6. Think about what tools (software and others) are needed to implement the idea and where the game mechanics will appear: on the website, [**in a chatbot**](https://altcraft.com/blog/the-benefits-of-chatbots-for-businesses), in an application, etc. Write a technical assignment for the team that will implement gamification.


7. Test the chosen gamification method on a small group and fix the errors.


8. Launch the game for all users and track the results.

## Gamification: examples of usage in marketing

The use of gamification is a popular approach, especially during holidays and important events such as premieres and various gatherings. Below are some examples of gamification.

### Japanese KFC’s game “Shrimp attack”

An outstanding decision of Japanese *KFC* outlet was performed due to their collaboration with *Nintendo* and promoted their new line of shrimp food. *Nintendo* developed a video game that suggested defending a castle from the shrimps attacking it. The users got virtual reward coins for their successful attempts and could spend them as real money at the nearest *KFC* location. Due to such a smart idea the sales increased up to 106%. 

<Img
img="/uploads/out1_1_717617b983.gif"
alt="Shrimp attack by Japanese KFC"
/>

### Making a pizza of your own with Domino’s Pizza

In 2011, *Domino's Pizza* launched an original game in their mobile app: users could create their own pizza online and order it at the nearest location. As a result, sales increased by 30% that year. But that's not all: the company invited the best pizza makers to work for them.

<Gallery>
<GalleryItem
original="/uploads/Piczcza_szhataya_1_35f70a2d14.gif"
thumbnail="/uploads/Piczcza_szhataya_1_35f70a2d14.gif"
description="The custom pizza of your own by Domino's Pizza"
/>
<GalleryItem
original="/uploads/Piczcza_szhataya_2_3728e81ca6.gif"
thumbnail="/uploads/Piczcza_szhataya_2_3728e81ca6.gif"
description="The custom pizza of your own by Domino's Pizza"
/>
</Gallery>

### M&M’s Eye-Spy Pretzel

In 2010, *M&M’s* launched candies with a new pretzel flavor. After a few years, they decided to reload the new flavor and posted an easy game *M&M’s eye spy pretzel* on Facebook. The result was 21,000 likes and 6,000 shares, which ultimately revived interest in the legendary brand.

<Img
img="/uploads/m_ms_facebook_gamification_aec81634df.png"
alt="M&M’s Eye-Spy Pretzel"
/>

### Starbucks

*Starbucks* is known for staying on top of technology trends, and one of the ways they do this is through their "My Rewards" program in the *Starbucks* app. This program allows customers to earn stars or points every time they make a purchase, and after collecting a certain number of stars, they can redeem them for discounted vouchers at their local *Starbucks*. Additionally, customers may receive free items like coffee or sandwiches during their visits.

<Img
img="/uploads/Starbucks_cde7fee5a3.gif"
alt="Starbucks"
/>

### The wheel of fortune by Gap

The clothing store Gap provided the newsletter with the wheel of fortune. You can never lose because you get your discount of a fixed amount of dollars, or you get some percent off for a purchase. 

<Img
img="/uploads/GAP_wheel_of_fortune_7588e9c14f.gif"
alt="The wheel of fortune by Gap"
/>

### Pepsi, For the Love of It campaign with AR game

In 2020, *Pepsi* launched a promotional campaign that utilized augmented reality (AR) technology, featuring four globally recognized football players, namely **Lionel Messi**, **Paul Pogba**, **Mo Salah**, and **Raheem Sterling**. The campaign introduced *Pepsi* cans with exclusive QR codes that could be scanned to load AR versions of the football players on users' phones. This allowed users to participate in a virtual kick-up game and share their experience on Instagram. The AR game was part of a cross-channel digital experience called *Pepsi, For the Love of It*, which aimed to boost customer engagement and enhance brand recognition.

<Gallery>
<GalleryItem
original="/uploads/gamification_pepsi_1_904bf5c7d1.png"
thumbnail="/uploads/gamification_pepsi_1_904bf5c7d1.png"
description=""
/>
<GalleryItem
original="/uploads/gamification_pepsi_2_b339c46906.png"
thumbnail="/uploads/gamification_pepsi_2_b339c46906.png"
description=""
/>
</Gallery>

### The Australian Sink a Sub

In 2020, the Australian brand *Subway*, together with *Wunderman Thompson Australia and New Zealand*, introduced a gaming experience called *Sink a Sub*. This game is set on a virtual battleground at sea and aims to transform how customers interact with the brand's most iconic product, the submarine sandwich. Every customer who purchases a sandwich and a drink at Subway locations in Australia and New Zealand got a code for the high-sea gaming experience, where they can participate in a game that involves sinking a submarine sandwich on the digital gameboard.

<Gallery>
<GalleryItem
original="/uploads/gamification_subway_1_948d2a4463.png"
thumbnail="/uploads/gamification_subway_1_948d2a4463.png"
description=""
/>
<GalleryItem
original="/uploads/gamification_subway_2_da85741866.png"
thumbnail="/uploads/gamification_subway_2_da85741866.png"
description=""
/>
<GalleryItem
original="/uploads/out1_2_f43d3dbd87.gif"
thumbnail="/uploads/out1_2_f43d3dbd87.gif"
description=""
/>
</Gallery>

## Summary

**Gamification** in marketing is the use of game mechanics to promote a company instead of traditional advertising. This method is chosen to attract new users and engage existing ones. It includes games with point accumulation and ratings, quizzes, lotteries, quests, competitions between users, and so on.

Gamification increases loyalty and sales, is suitable for many businesses, but usually requires investment to develop such projects. To implement gamification in marketing, first set a goal and define which business tasks it will solve. Next, mechanics, scenarios, and a technical task for the team are outlined. When launching gamification, it is worth testing it on a small group before opening the game to the entire audience.

Gamification in marketing is the use of game elements to promote a company, its products, and services. Quizzes, quests, competitions, and so on are used.

gejmifikaciya_v_marketinge_d50cd0e664.png

Hunting for a fresh & creative idea to boost customer engagement and increase sales?

Gamification: What is It and How to Use It in Marketing

How to Use Gamification in Marketing

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